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Shiba Inu shows volatility after recent Golden Cross

Shiba Inu shows volatility after recent Golden Cross

GrafaGrafa2024/11/18 20:00
By:Liezl Gambe

Shiba Inu (CRYPTO:SHIB) recently captured market attention by forming a Golden Cross on its daily chart, where the 50-day moving average crossed above the 200-day moving average, a typically bullish signal that initially boosted investor optimism.

However, after peaking at $0.00002622, SHIB experienced a sharp price correction, dropping to $0.00002453, a decline of 4.07% over 24 hours.

Technical indicators such as Bollinger Bands pointed to increased volatility, with SHIB trading close to the lower band, suggesting the potential for further price declines if selling pressure remains consistent.

Key support levels identified are the 50-day moving average at $0.00001902 and the 200-day moving average at $0.00001833, crucial for preventing further drops.

On-chain data from Santiment highlighted a surge in SHIB’s network growth, with new addresses peaking at 6,612 before reducing to 4,612.

This indicates growing interest that may support price stability if maintained, but a decline in network activity could challenge SHIB’s ability to sustain higher price levels.

Looking ahead, the next important support to watch is at $0.00002450.

Failure to hold this level could lead to a fall toward $0.00002300 and potentially down to $0.00001902 or $0.00001833.

Conversely, a return to $0.00002600 would indicate a resurgence of bullish momentum.

Despite the recent Golden Cross signaling potential growth, SHIB’s price correction underscores the challenges it faces in maintaining momentum.

Monitoring its ability to hold critical support levels and sustain network growth will be vital for assessing future movements and investor sentiment.

At the time of reporting, the Shiba Inu (SHIB) price was $0.00002537.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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